WASHINGTON -- The creators and marketers of the "Lumosity" brain training program agreed to pay $2 million to settle Federal Trade Commission charges over deceiving consumers.
The FTC alleged the group deceived consumers with unfounded claims that Lumosity games can help perform better at work and in school or reduce/delay cognitive impairment associated with age.
Lumos Labs, which owns Lumosity, will pay the FTC the fine and then notify subscribers of the action and provide them with a way to cancel their auto-renewal to avoid future billing.
The FTC said Lumosity failed to disclose some consumer testimonials featured on the website had been solicited through contests that produced significant prizes. The FTC also questioned the "scientific studies" that backed up Lumosity's claims.
As part of the order, a $50 million judgment was imposed against Lumos Labs, but suspended due to the company's financial condition after paying the $2 million penalty.
The court order also stated that the company and co-founder/former CEO Kunal Sarkar and co-founder/former Chief Scientific Officer Michael Scanlon must have "competent and reliable scientific evidence before making future claims about any benefits for real-world performance, age-related decline, or other health concerns.
